Royal Bank of Canada (NYSE: RY) filed a preliminary Form 424B2 pricing supplement on August 4, 2026, disclosing terms for Auto-Callable Contingent Coupon Barrier Notes linked to the common stock of Amazon.com, Inc., with a scheduled maturity date of September 23, 2027.

Key Highlights

  • Contingent Coupon Rate: Notes pay $9.083 per $1,000 principal amount per month, corresponding to a rate of 0.9083% per month or 10.90% per annum, only if Amazon's closing price is at or above 70% of the Initial Underlier Value on the relevant Coupon Observation Date.
  • Auto-Call Trigger: Beginning approximately six months after the Trade Date (first eligible Call Observation Date: February 18, 2027), the Notes are automatically called at 100% of principal plus the applicable Contingent Coupon if Amazon closes at or above the Initial Underlier Value.
  • Barrier Value: Set at 70% of the Initial Underlier Value; if the Final Underlier Value falls below this level at maturity, investors receive shares of Amazon stock that, according to the filing, "will likely be worth significantly less than the principal amount of your Notes and could be worth nothing."
  • Initial Estimated Value: The filing states the initial estimated value is expected to be between $919.08 and $969.08 per $1,000 principal amount, which "will be less than the public offering price of the Notes."
  • Underwriting Cost: Underwriting discounts and commissions are 1.50%, with proceeds to Royal Bank of Canada at 98.50% per note; selling concessions may reach up to $15.00 per $1,000 principal amount.
  • Key Dates: Trade Date is August 18, 2026; Issue Date is August 21, 2026; Valuation Date is September 20, 2027; Maturity Date is September 23, 2027.
  • Listing Status: The filing states the Notes will not be listed on any securities exchange.

Structure and Risk Terms of Royal Bank of Canada's Amazon-Linked Notes

According to the preliminary pricing supplement, Royal Bank of Canada is offering Auto-Callable Contingent Coupon Barrier Notes (CUSIP: 78015QZD6) through underwriter RBC Capital Markets, LLC. The Notes are linked to the common stock of Amazon.com, Inc. (Bloomberg Ticker: AMZN UW) and are part of the issuer's Senior Global Medium-Term Notes, Series J. The minimum investment is $1,000, and denominations must be in multiples of $1,000.

The filing describes a monthly coupon observation schedule running from September 18, 2026 through the Valuation Date of September 20, 2027. Contingent Coupons are only paid on a given Coupon Payment Date if Amazon's closing price on the preceding Coupon Observation Date is at or above the Coupon Threshold, which is set at 70% of the Initial Underlier Value. The filing notes that investors "may not receive any Contingent Coupons during the term of the Notes." The auto-call feature activates on any eligible monthly Call Observation Date beginning with February 18, 2027, if Amazon's closing price equals or exceeds the Initial Underlier Value. Upon a call, investors receive $1,000 plus the Contingent Coupon due; no further payments follow.

At maturity, if the Notes have not been called and the Final Underlier Value is at or above the Barrier Value, investors receive $1,000 per note plus any Contingent Coupon due. If the Final Underlier Value is below the Barrier Value, investors receive a Physical Delivery Amount of Amazon shares equal to $1,000 divided by the Initial Underlier Value, rounded to four decimal places, with fractional shares settled in cash. The filing states that all payments are "subject to our credit risk," and specifies that the Notes are not insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation, or any other governmental agency.

What Was Disclosed

Royal Bank of Canada filed a preliminary 424B2 disclosing terms for Amazon-linked auto-callable notes maturing September 23, 2027, including a 10.90% per annum contingent coupon, a 70% barrier, auto-call eligibility starting February 2027, and an initial estimated value below the $1,000 public offering price.